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Small business hiring to rise in 2014, survey says

February 12 2014

An increased number of small business owners plan to add more employees and boost compensation levels, signaling a slightly more positive economic outlook for 2014, according to a new business confidence survey released by Insperity Inc. (NYSE: NSP), the largest professional employer organization in the U.S.

“The small business community is taking a more positive approach to 2014 business plans according to our business confidence survey responses and internal data,” said Insperity Chairman and CEO Paul Sarvadi. “Business owners and managers seem willing to hire more employees, increase wages and gear up for improved sales in spite of challenges like an uncertain economy and the Affordable Care Act.”

Fifty percent of respondents plan to add employees, up significantly from 26 percent in October and 40 percent in the July survey; 47 percent are maintaining current staffing levels compared to 68 percent last fall; and just over 3 percent plan layoffs, down from 5 percent in October.

The survey found 46 percent plan to increase employee compensation, up significantly from 17 percent in October; 43 percent plan to maintain compensation at current levels, down from 71 percent last fall; 1 percent expect compensation decreases; and 10 percent are unsure.

Additional survey results include:

66 percent expect sales increase in 2014, up from 45 percent last October

Average compensation up 2.9 percent, commissions increase by 1.7 percent

38 percent think economic rebound now in process, up from 26 percent last survey

Insperity conducted the survey from Jan. 7 to Jan. 9. It included CEOs, CFOs and other executives in a variety of industries from its base of approximately 5,500 U.S. workforce optimization clients.

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